Lack of new launches to hit GoPro's fourth-quarter results
By Lehar Maan
(Reuters) - GoPro Inc forecast lower-than-expected revenue for the fourth quarter, due to lower demand for its recently launched flagship cameras and lack of new products for the crucial holiday quarter.
Shares of the company, which also forecast adjusted profit for the quarter well below analysts' estimate, slumped 18.6 percent in extended trading on Wednesday.
GoPro Chief Executive Nicholas Woodman said weaker-than-expected demand for its Hero4 Session camera was due to its initial high price and fewer marketing campaigns.
"We made some mistakes and we have taken corrective action," Woodman said.
The company launched its flagship camera in July for $399.99, but slashed its price by $100 two months later.
GoPro's helmet- and body-mounted cameras are popular with surfers, skydivers and other adventure sports enthusiasts.
However, the recent advancements in video-shooting capabilities of smartphones, such as Apple Inc's iPhone 6 range, is likely eroding GoPro's consumer base.
The company forecast adjusted profit of between 35-45 cents per share on revenue of $500 million-$550 million. Continued...